How much do taxes bring to Minnesota?
Some gubernatorial candidates say raising taxes should be part of the solution to righting a deficit expected to run into the billions of dollars. Here's a rough estimate of what tax increases in each category might yield per year, based on recent economic forecasts:
Individual income tax
A rate increase of .10 percent would bring:
• Lowest rate (5.35 percent): $45 million
• Middle rate (7.05 percent): $34 million
• Top rate (7.85 percent): $27 million
• Surtax of 10 percent across-the-board: $680 million
Corporate franchise tax
Increase rate .10 percent: $6 million
Increase minimum fees by 50 percent: $30 million
Establish a minimum fee of $50: $6 million
GENERAL SALES AND USE TAX
Increase rate 1 percent: $648 million
Tax clothing at 6.5 percent: $280 million
MOTOR VEHICLE SALES TAX
Increase rate 1 percent: $66 million
Replace flat taxes with 6.5 percent tax: $45 million
GASOLINE/SPECIAL FUELS TAXES
Increase rate 1 cent per gallon: $30 million
LIQUOR TAXES
Increase tax by 10 percent: $8 million
Increase tax by 1 cent per drink: $26 million
Increase gross receipts tax by 0.5 percent (to 3.0 percent): $14 million
CIGARETTE TAX
Increase tax by 25 cents per pack: $46 million
Increase tax by 50 cents per pack: $87 million
Increase tax by $1 per pack: $143 million
MinnesotaCare taxes
Increase rate 0.5 percent: $124 million
STATE GENERAL PROPERTY TAX
Increase rate 1 percent: $18 million
PROPERTY TAX REFUND
Reduce percent of rent 1 percent: $13 million
Source: Minnesota Revenue Department